On Monday, the Obama administration launched the Emergency Homeowners’ Loan Program, the goal of which is to help the unemployed pay their mortgages by providing them with zero-interest loans. Under program guidelines, eligible homeowners can qualify for an interest free loan which pays a portion of their monthly mortgage for up to two years or up to $50,000, whichever comes first.

However, in order to take advantage of this program, homeowners must apply by July 22. Also, borrowers must be approved by Sept. 30 because as of that date, the government loses its authority to issue the new loans.

According to The Wall Street Journal, the program is similar to an effective initiative from the 1980s aimed at helping those facing foreclosure:

The program was inserted into the Dodd-Frank bill by Democrats who modeled the program after one created in Pennsylvania in the 1980s to assist unemployed steel and coal workers. It has won plaudits for being more effective than other foreclosure-prevention programs.

In addition to DC, the program is available to unemployed homeowners in the following states: Alaska, Arkansas, Colorado, Hawaii, Iowa, Kansas, Louisiana, Maine, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Mexico, New York, North Dakota, Oklahoma, South Dakota, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming and Puerto Rico. Five states operating similar programs are administering Emergency Homeowners’ Loan Program help directly: Connecticut, Delaware, Idaho, Maryland, and Pennsylvania

This article originally published at http://dc.urbanturf.com/articles/blog/act_fast_obama_launches_foreclosure_relief_initiative/3695

1 Comment

Kevin Mischka said at 3:18 am on Sunday July 17, 2011:

Thanks for this article and for the tons of other great resources re housing and related issues in DC…but I hope you don’t mind my clarifying:

The EHLP program isn’t available in DC.

The GOOD NEWS: it’s not available here because the DC Housing Finance Agency is administering a similar (better, I think) program for unemployed homeowners - HomeSaverdc.org will get you details; the EHLP site directs you there when you try to find an EHLP partner agency in DC.

If you or someone you know was about to hustle to meet the July 22 deadline, I’d encourage you to STILL apply ASAP for the HomeSaver program (assuming you’re eligible).

After you apply online, you’ll be contacted one of the agencies that work with you to complete the application, and move forward from there. Good luck!

PS The process is pretty straightforward, and I’m sure all the agencies handle this well - but I am BLESSED that my counselor, Darren, has been *extraordinarily* clear, supportive, and patient with me throughout. Thanks, Darren!

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